Comparing Acadian Asset Management (NYSE:AAMI) & Investcorp Credit Management BDC (NASDAQ:ICMB)

Investcorp Credit Management BDC (NASDAQ:ICMB) and Acadian Asset Management (NYSE:AAMI) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, institutional ownership, dividends, risk and profitability.

Insider and Institutional Ownership

7.8% of Investcorp Credit Management BDC shares are owned by institutional investors. Comparatively, 98.7% of Acadian Asset Management shares are owned by institutional investors. 1.3% of Investcorp Credit Management BDC shares are owned by insiders. Comparatively, 22.6% of Acadian Asset Management shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Investcorp Credit Management BDC and Acadian Asset Management, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Investcorp Credit Management BDC	1	0	0	0	1.00
Acadian Asset Management	0	2	2	0	2.50

Acadian Asset Management has a consensus price target of $100.00, suggesting a potential upside of 9.39%. Given Acadian Asset Management’s stronger consensus rating and higher probable upside, analysts plainly believe Acadian Asset Management is more favorable than Investcorp Credit Management BDC.

Earnings and Valuation

This table compares Investcorp Credit Management BDC and Acadian Asset Management”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Investcorp Credit Management BDC	$17.40 million	0.55	-$8.85 million	($1.42)	-0.46
Acadian Asset Management	$563.70 million	5.76	$80.00 million	$3.41	26.81

Acadian Asset Management has higher revenue and earnings than Investcorp Credit Management BDC. Investcorp Credit Management BDC is trading at a lower price-to-earnings ratio than Acadian Asset Management, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Investcorp Credit Management BDC and Acadian Asset Management’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Investcorp Credit Management BDC	-134.21%	0.86%	0.28%
Acadian Asset Management	17.02%	139.70%	22.94%

Volatility and Risk

Investcorp Credit Management BDC has a beta of 0.72, suggesting that its stock price is 28% less volatile than the S&P 500. Comparatively, Acadian Asset Management has a beta of 1.29, suggesting that its stock price is 29% more volatile than the S&P 500.

Summary

Acadian Asset Management beats Investcorp Credit Management BDC on 13 of the 14 factors compared between the two stocks.

About Investcorp Credit Management BDC

Investcorp Credit Management BDC, Inc. is a business development company specializing in loan, mezzanine, middle market, growth capital, acquisitions, market/product expansion, organic growth, refinancings and recapitalization investments. It also selectively invests in mezzanine loans/structured equity and in the equity of portfolio companies through warrants and other instruments, in most cases taking such upside participation interests as part of a broader investment relationship. The fund typically invests in United States and Europe. Within United States, the fund seeks to invest in Midatlantic, Midwest, Northeast, Southeast, and West Coast regions. The fund primarily invests in cable and satellites; consumer services; healthcare equipment and services; industrials; information technology; telecommunication services; and utilities sectors. The fund seeks to invest between $5 million to $25 million in companies that have annual revenues of at least $50 million with EBITDA at least $15 million.

About Acadian Asset Management

Acadian Asset Management Inc. is a publically owned asset management holding company. The firm provides its services to individuals and institutions. It manages separate client focused portfolios through its subsidiaries. The firm also launches equity mutual funds for its clients. It invests in public equity, fixed income, and alternative investment markets through its subsidiaries. The firm was founded in 1980 is based Boston, Massachusetts. It was formally known as BrightSphere Investment Group plc. BrightSphere Investment Group Inc. was formed in 1980 and is based in Boston, Massachusetts.